The U.S. is finally investing in domestic chip production—will it make a difference?

Sitting inside every pair of Apple’s recently upgraded AirPods Pro is its new H2 chip. Like all Apple products, the H2 was designed in California. But it was likely built in Taiwan, home of supplier TSMC. This design-then-outsource method has become a staple of the U.S. approach to bringing upgraded semiconductors into cellphones, defense systems, and cars. U.S. chip manufacturing is now a third of what it was in 1990. To energize the domestic market and create jobs while addressing shortages and maintaining defense systems, Congress passed the CHIPS and Science Act. Whether it’s the best investment is an open question.